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External environment
The external environment impacts on businesses and si comprised of many factors. These factors are often used by businesses to analyse how and why they will be successful or unsuccessful - this analysis is known as 'PESTLE' which stands for:
Political
Economic
Social
Technological
Legal
Environment
Political:
Government support, such as monetary grants or promotion, can inject considerable enthusiasm into new business ideas such as wind farms and solar panels. Although grants are time constrained, you have probably noticed both of these examples springing up around the country. Of course, there is a motive for government support according to government policy and promises.
The government website regularly updates with announcements. You may also recall the example of government bail-out when Northern Rock and the Royal Bank of Scotland (RBS) were in financial trouble. However, there are plenty of business owners who claim government does little to support their sectors.
Membership of trading communities Businesses can benefit from being members of trading communities. These are often sector related, such as retail, health, publishing, tourism, catering, etc. and provide networking opportunities, advice, news and opportunities to buy or sell equipment,
services, training, etc.
The European Union
The European Union E(U) is another form of trade association. The UE promotes
itself as 'the best way to realise our global future. Being a member of any trade
association gives credibility in the eyes of the customer, just as you would expect a gas fitter or service engineer to be Gas Safe registered. tI can be seen to open doors to opportunities that are closely guarded or seen as exclusive.
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